air india vs spice jet
TRANSCRIPT
Guess the airline ?
Presented byLogesh Kumar. P
Gayathri. SRanjith kumar. M
VivekSanthosh Raja. C
Nethaj. S
The journey of
J. R. D. Tata
AIR INDIA as TATA AIRMAIL• Tata Airlines,was founded by J. R. D. Tata in
1932 as a division of Tata Sons Ltd. • It was started as a mail service over the route
Karachi to Bombay and on south to Madras.
• Tata AirServices started, carrying passengers in the next few years, continued to rely for its revenue on the mail contract with the Government of India for carriage of surcharged mail
TATA AIRLINES IN 1938In 1938
Tata Air Services was renamed as
Tata Air Lines.
AIR INDIA in 1947
• Tata Airlines became a public limited company on 29 July 1946 under the name Air India
• After Indian Independence 49% of the airline was acquired by the Government by force, with an option to purchase an additional 2%.
• In return, the airline was granted status to operate international services from India as the designated flag carrier under the name Air India International
Subsidiary
National Aviation Company of India Ltd (AIR INDIA LIMITED)• Air India
– Air India Express– Air India Cargo– Air India Charters Limited– Hotel Corporation of India Limited– Air India Engineering Services Limited– Airline Allied Services Limited
• Indian Airlines(merged with Air India)– Air India Regional (formerly Alliance Air)
Subsidiary
Air India Regional
INDIAN AIRLINES (now part of AIR INDIA)
• Initially,• Air India took over international routes • Indian Airlines Corporation took over the domestic and
regional routes
INDIAN (now part of AIR INDIA)
• On 7 December 2005, the airline (INDIAN AIRLINES ) was rebranded as Indian
• Indian officially merged into Air India on 27 February 2011.
• Air India Express is a low-cost airline operating mainly from Indian state of Kerala.
• Air India Express operates services mainly to the Middle East and Southeast Asia.
www.airindiaexpress.in
Air Express Flights
Portray’sINDIANCULTURE
Top ManagementFounder : J. R. D. Tata
Shri Arvind JadhavCurrent Chairman and MD, NACIL(AIR INDIA)
Shri E. K. Bharat Bhushan Joint Secretary, Ministry of Civil Aviation
AIR INDIA was incorporated under the Companies Act 1956 on 30 March’07 and was owned by the Government of India
Shri Arvind Jadhav
• Headquarters :– Air India Building, Nariman Point, Mumbai, India
• SERVICESAirlines (Passenger and Cargo)Ground Handling ServicesHotel Services
• www.airindia.com
Air India Building
BRAND STRATEGY MASCOT - Maharajah
• Passengers are welcomed by the Maharajah, the official mascot of Air India
• His expressions, his puns have allowed Air India to promote its services with a unique style and an unmatched sense of subtle humour.
• He has won numerous national and international awards for Air India for originality in publicity.
Air India Logo
• 1940s-2007 Air India logo
• New logo from 2007:– The logo of the new airline is a red coloured flying
swan with the `Konark Chakra' in orange, placed inside it
SWOT ANALYSIS
Strengths
• Rapidly growing economy • Growing population and middle
class • Dispersed tourist attractions • Long history of Civil Aviation • Good safety record • Good reputation in both
international and domestic markets, quality service
Weakness
• Limited infrastructure • Inadequate trained manpower • Lack of R&D; foreign dependence • Growing Competitor base and entry of Low-
Cost Carriers• Slow cargo growth
Global terrorism Cyclical economic downturns
Development of substitutes Congestion of air space
International factors
Threats
The Indian Railway Ministry has dramatically improved speed and services in their prices almost at par with the low cost carriers
• Growing desire and need amongst Indians to travel in India and abroad for leisure and work.
• Development of India as a prime tourism and medical services destination.
• Increased integration with the global economy • Strong growth of inbound business travellers • Cross country travel by students
OPPORTUNITIES
AIR INDIA OPERATIONS
Product Development
Air India and its low-cost subsidiary Air India Express currently operate a fleet consisting of including
the Airbus and Boeing
Conglomerate Diversification
• Airline– Air India– Air India Express– Air India Regional
• Ground Handling Services– IAL Airport Services Limited
• Hotels– Hotel Corporation of India Limited
• Services – Maharaja Lounge
Customer Preference-Air India’s Maharaja Lounge
• Lounge is the private waiting area offered by airlines to special customers or to those who pay an extra fee.
• AIR INDIA has Lounge at• Chennai• London–Heathrow• Mumbai• New Delhi• New York–JFK
Mergers & Acquisition
• The Air India Limited is a company that was formed as
National Aviation Company of India Limited by the government of India to oversee the merger of
Air India and Indian (formerly Indian Airlines).
Joint venture
+
Joint venture
• National carrier Air India and Singapore Airport Terminal Services (SATS) signed an agreement in Singapore on April 16, 2010 ,
• To form a single 50:50 joint venture (JV) company that would serve as the vehicle to house their three existing ground and cargo handling JVs in Bangalore and Hyderabad.
• To be named Air India SATS Airport Services Private Limited (AISATS), the JV company is in the process of being incorporated in Delhi
PRICING STRATEGY - Frequent Flyer Programme
• Air India has a Frequent Flyer Programme branded "Flying Returns”.
• Members of the Flying Returns Programme (FRP), can accrue mileage points and redeem them for award tickets on Air India or Lufthansa.
• "Flying Returns" has a membership of nearly 6,00,000 in India, the Gulf, UK, USA, Canada and South-East Asia.
Horizontal Integration
• The Alliance Air airline was established on 1 April 1996 and started operations on 21 June 1996. It was wholly owned by Indian Airlines.
• The airline was renamed Air India Regional post-merger
Air India Regional
Re-privatization plans
• In 2001, Air India was put up for sale by the then NDA government.
• One of the bids was by a consortium of Tata Group-Singapore Airlines.
• However the re-privatization plans were shelved after Singapore Airlines pulled out and the global economy slumped
• IDENTIFY THE AIRLINES
INTRODUCTION
Spice Jet, India's leading low cost airline
It is promoted by Ajay Singh and the Kansagra family.
Their aim is to compete with the Indian Railways passengers travelling in air conditioned coaches.
Question
NAME THE PERSON WHO IS HOLDING THE MAJOR SHARES OF SPICE JET?
Answer
• Indian media baron Kalanidhi Maran acquired a major stake (37.7%) in this airline on June 2010
Company Profile
• Founded - 2004• Commenced operations - 23 May 2005• Type Public - (BSE: SPICEJET)• Industry -Transportation• Headquarters - Delhi• Area served - India, Srilanka, Nepal• Key people - Kalanidhi Maran
Cont……
• Services - Airlines & Aviation• Revenue -$400.52 million USD (2009)• Employees - 2,000+ (2009)• Subsidiaries - SpiceJet Cargo• Slogan - "Get More When You Fly"• Website - www.SpiceJet.com
COMPANY VISION
• SpiceJet's vision is to address that and ensure that flying is for everyone.
COMPANY MISSION
• SpiceJet’s mission is to become India’s preferred low-cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers. We hope to fulfill everyone’s dream of flying!
Fleet
• A SpiceJet Boeing 737-800 at Indira Gandhi International Airport (2007).
• As of December 2010, the SpiceJet fleet consists of the following aircraft with an average age of 4.4 years.
Destinations
• SpiceJet flies to 22 destinations across India, Nepal and Sri Lanka
• It commenced international operations with flights from Chennai to Colombo, Sri Lanka on 7th October 2010.
• Flights from New Delhi to Kathmandu, Nepal on 9th October 2010
JOB BENEFITS
• Attractive work calendar• Salary in USD• All Indian taxes to be borne by the Company• Accommodation facility provided • 8-day leave every month• Attractive remuneration
TECHNICAL QUALIFICATIONS
CAPTAINS (Job Code: CA-01) Holding valid and current ATPL license Minimum total flying experience – 5000 hours Minimum total PIC flying experience – 1500 hours Minimum total PIC on type – 1000 hrs Maximum age limit – 55 years Current PC/IR The selected Captains will undergo Indian medical
test, as per the Indian DGCA regulations.
ENGINEERS (Job Code: ENG-02)
• Require experienced Bombardier Dash 8-Q400NG Engineers• Certified Aircraft Engineers• Trained and licensed to an internationally
recognized Airworthiness Authority• Holding current company approvals in
Airframe, Engine and/or Avionic specialties
QUICK SMART. POWERFUL AND CHOOSY
Spicejet brings Q400 NextGen for the first time in India.
But not everyone gets to experience its Superior Noice and Vibration Suspension (NVS) system or advanced avionics.
If you think you can be one of the chosen few to fly these machines, email your resume in MS Word format to [email protected]
Bombardier Dash 8-Q400NG
SpiceJet fleet consists of
Spice Jet fleet
Aircraft In Service OrdersPassengers(Economy)
Notes
Boeing 737-800
21 33 1895 dry leased
from GECAS
Boeing 737-900ER
5 0 212
Bombardier Dash 8 Q400
— 15 70Deliveries from
mid 2011
Total 26 63
Awards
• Award for Best website 'World Low Cost Airlines Asia Pacific Conference' at Singapore 2010
• Best low fare airline in India, as per survey conducted by MaRS on behalf of Hindustan Times (December 2009)
Contd…..
• World Travel Market Award for multi-channel approach in distribution, London (November 2009)
• Best Employer Brand Award, for their employee best practises, from the Employer Branding Institute, Hyderabad (December 2009)
Route Map
Competitive Advantage
• unique word-of-mouth marketing strategy, supported by print and Internet media initiatives.
• To build further on its branding value, Spice Jet has introduced on-board merchandise sales such as goggles, airplane models, perfumes, caps and watches.
• Innovative pricing has also been central to the company's success. As a result, the airline's prices compete with first-class Indian railway fares.
• Market Share Value – 46.55• Shareholding Pattern:
% of Shares Holders
10 Ajay Singh
6 Goldman Sachs
12 Kansagra Family
Strategies
Strategies
• They fly at a height of 38000 feet which increase their fuel efficiency by 10%.
• Paying to oil companies and flight operators before due date
• Spice Jet is getting fuel efficiency which further allows them to offer lowest fares by having a tie-up with KLM Royal Dutch airlines for the maintenance support of its fleet.
Strategies(contd.)
• Cadet Pilot Program• tie-up with Star Navigation, Russell Adams and
Tech Log for state of the art technology• It also announces some promotional schemes
to recognize itself in customers such as it announced that on the occasion of 60th Republic Day it will give a100% discount to defence personnel from 26 January 2010 to 26 March 2010
• Does beyond price-only promotions
• Spice Jet is India's 'best low cost airline' , delivering the lowest air fares with the highest consumer value. They operate 259 flights daily to 19 cities
STRENGTH
• Business advantages• Core competencies• Making the most money• Second in LCC segment• First to target the middle
class.• Using similar kind of
plane.• Reputation
WEAKNESSES
• Lack of resources• Doing poorly• Improvement• Very limited advertisings• Reached at the threshold
of cost efficiency• Small fleet structure• Small load efficiency
compared to Air Deccan / Indigo
OPPORTUNITIES
• Beneficial trends• Niches• New technologies• New needs of customers• Capitalizing Cargo business.• Scope for expansion of
operations.• Strengthen its position in
Chartered flight segment.• Could start Contractual
Employment.
THREATS
• Obstacles • Aggressive competitors• Successful competitors• Negative economic
conditions• Government regulation• Changing business
climate• Vulnerabilities
Competitors
Future Plans• Spice Jet plans to fly overseas.• Aims to compete with Indian
Railways AC segment.• Aims at future fleet expansion• Spice Jet looking to order 20
planes as rates head south• looking to raise the prices of its
fares to meet crude expenses
• http://www.logodesignworks.com/blog/airlines-logo-design-aircraft-logos
• http://home.airindia.in/SBCMS/Webpages/JRD.aspx?MID=196
• http://thelogoquiz.blogspot.com/2009/03/logo-history-air-india-logo.html
• http://www.iloveindia.com/airlines-in-india/domestic/indian-airlines.html
Thank you